Haslam to remain CEO of Pilot Flying J during FBI investigation

Jimmy Haslam III was defiant Friday afternoon during a news conference in Knoxville, Tenn., and said he is staying on as CEO of Pilot Flying J while the FBI investigates his company for allegedly defrauding several trucking companies of rebates.

Haslam, who began the process of purchasing the Browns last Aug. 3, made no mention of his football team Friday. He started by reading a statement and went off script while talking for more than eight minutes. He did not take questions about the Pilot Fly J crisis but as the session ended a reporter asked, "Will you take the Browns to the Super Bowl?"

"Eventually, yes," Haslam said, grinning, as he waved to reporters and walked through the open door.

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NFL spokesman Greg Aiello, in an email Friday, said the NFL is not concerned about the daily operation of the Browns and that it has no plans to ask Haslam to step away as Browns owner.

The FBI investigation centers on rebates Pilot Flying J offers trucking companies for buying large quantities of diesel fuel -- the more fuel purchased, the bigger the rebate. Pilot Flying J intentionally reduced the rebates to at least half a dozen "unsophisticated" companies, according to the affidavit made public Thursday. According to the affidavit, Haslam allegedly knew about the scheme.

Haslam was in Cleveland on Thursday to be part of the preparation for the NFL draft next week. He planned to stay in town Friday but returned to Pilot Flying J headquarters in Knoxville to address the FBI investigation.

There was speculation Haslam might temporarily resign his role with the truck stop company his father founded 55 years ago during the investigation. Instead, he is digging in his heels.

"Why would I do that?" he said. "Candidly, I haven't done anything wrong. If there is ever a time the company needs our leadership, it's right now."

The Knoxville headquarters of Pilot Flying J., the largest truck stop travel center in North America, was raided by the FBI and the IRS on Monday. According to affidavits, investigators believe they have evidence proving a "conspiracy and scheme to defraud executed by various Pilot employees to deceptively withhold diesel fuel price rebates and discounts from Pilot customers, without the knowledge or approval of the customer, for the dual purposes of increasing the profitability of Pilot and increasing the diesel sales commissions of the Pilot employees participating in the fraud."

The alleged fraud was brought to the FBI's attention by an informant on May 4, 2011. Allegedly the fraud targeted trucking companies deemed "too unsophisticated' to figure out what was happening.

One name mentioned in the affidavit is Director of National Sales, Brian Mosher. He allegedly would reduce rebates without telling customers and blame a computer glitch if the reduction was discovered.

One company, Morehouse Truckline, allegedly discovered in June of 2012 it had been shorted $146,564.55 in rebates over seven years while purchasing more than 4 million gallons of diesel fuel.

A former Pilot sales manager, Cathy Giesick, recalled meeting three or four years ago in which Haslam "thanked Mosher for saving Pilot money," according to the affidavit.

Haslam used his news conference Friday to remind reporters Pilot Flying J has always been active in the Knoxville community and promised it would remain active. He said business at the 500 Pilot truck stop travel centers remains strong, that employees remain loyal and that he has " been inundated with texts, emails and calls" from trucking companies that would welcome FBI audits of their rebates.

"When my dad started this company it was built on integrity and we continue that to this day," Haslam said. "To have this type of incident happen here at Pilot Flying J is tough. It's rocked us back. But we feel confident this company is run the right way and will continue to be run the right way.

"I'm highly confident we'll emerge from this even a better company than we are today."

Haslam said his company will continue to cooperate with federal authorities and conduct its own internal investigation.